Signs Of Hope From US Economy
June 5th, 2009
Economic forecasters are tipping the US economy will begin growing in the second half of this year, while the jobless rate is expected to peak in the first quarter of 2010. The Blue Chip Economic Indicators newsletter for May has questioned a panel of economists who say economic growth, as measured by real GDP, will shrink 2.8% in 2009 but grow 1.9% in 2010. They say the downturn will ease in the second quarter, with growth forecast to resume in the third quarter.
The US economy is showing signs of recovery. The four-week average of new jobless claims, a better gauge of underlying labour trends because it irons out week-to-week volatility, has fallen for fourth straight weeks. The Institute of Supply Management’s index of activity in the manufacturing sector increased to a seven-month high in April while its index of activity in the service sector jumped to its highest level since October. There’s also evidence total housing starts are near a bottom.
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